Skipping health insurance as a young adult can seem like a tempting option if you’re healthy and don’t anticipate needing medical care, but it comes with risks and potential financial consequences. Here’s a breakdown of the costs and consequences of going without health insurance:
1. Increased Financial Risk in Case of Emergency
- Unexpected Medical Bills: Even if you’re healthy, accidents, injuries, or sudden illnesses can happen at any time. Without insurance, you could face high out-of-pocket expenses for emergency room visits, hospital stays, surgeries, or treatments.
- Example: The average cost of an ER visit can range from a few hundred dollars to thousands, depending on the severity of the injury or illness. Without insurance, you could be responsible for the full amount.
- Action: Without insurance, you may struggle to pay large medical bills, which could result in long-term debt or financial strain.
2. Higher Costs for Preventative Care
- No Coverage for Routine Care: Health insurance typically covers preventive care, such as vaccinations, screenings, and annual check-ups. Without insurance, you might skip these important appointments, which could lead to health problems going undiagnosed until they become more serious (and expensive to treat).
- Example: The cost of preventive services, like a yearly physical exam or vaccinations, can add up. Without insurance, you’d bear the full cost.
3. Potential Penalties (Depending on Your State)
- State-Level Penalties: While the federal penalty for not having health insurance was eliminated in 2019, some states have implemented their own penalties for being uninsured.
- States with Penalties: California, Massachusetts, New Jersey, Rhode Island, and Washington, D.C., are examples of states that impose fines on people who don’t have health insurance.
- Example: In California, you could face a penalty of up to $1,000 per year (depending on income) if you are uninsured.
4. The Risk of Not Having Mental Health Coverage
- Mental Health Needs: Mental health challenges like anxiety, depression, and stress are common among young adults. Without insurance, access to mental health services can be costly, and you might not seek the care you need.
- Cost of Therapy: A single therapy session can cost $100 or more without insurance, and those costs can add up quickly if you need regular treatment.
- Action: Skipping health insurance could lead to untreated mental health conditions, which may affect your overall well-being, relationships, and productivity.
5. Limited Access to Prescription Medication
- No Coverage for Medications: If you need prescription medications, going without insurance means you’ll have to pay the full price for your prescriptions.
- High Prescription Costs: Some medications, especially for chronic conditions, can be expensive without insurance. For example, monthly prescriptions for conditions like asthma, diabetes, or mental health disorders can cost hundreds of dollars without insurance.
- Action: Without coverage, you might be forced to either forgo necessary medications or face high out-of-pocket costs.
6. Younger People Are Not Immune to Chronic Conditions
- Chronic Conditions: While youth are generally healthier, chronic conditions like asthma, diabetes, or high blood pressure can develop at a young age. If you don’t have insurance, managing these conditions can be expensive.
- Example: The cost of managing a chronic condition without insurance could involve regular doctor visits, lab tests, and prescription medications—all of which can quickly add up.
7. Harder to Get Health Insurance Later
- Pre-existing Conditions: If you skip insurance and develop a health condition, you might face higher premiums or be denied coverage in the future. Under the Affordable Care Act (ACA), insurers can’t deny coverage based on pre-existing conditions, but if you let your coverage lapse, it may be more difficult or expensive to get insured when you need it.
- Action: Skipping insurance for a long period could result in missing important health care windows, or the need for more expensive options later.
8. Missed Access to Subsidies or Lower-Cost Coverage
- Marketplace Subsidies: If you qualify based on income, you might be able to access subsidies on the Health Insurance Marketplace that can make insurance more affordable. If you choose to go without insurance, you’re missing out on these opportunities to reduce your premium and out-of-pocket costs.
- Action: If your income is low, you might qualify for plans with little to no monthly premium costs through the Marketplace. Skipping insurance means missing out on these potential savings.
9. Mental and Physical Health Costs of Stress
- Stress and Financial Pressure: The stress of being uninsured, especially if something unexpected happens, can take a toll on your mental health. Knowing that you’re financially unprepared in case of an emergency can lead to anxiety and emotional distress.
- Action: Stress itself can contribute to both mental and physical health problems. Being uninsured could leave you feeling constantly anxious about your health and finances.
10. Limited Access to Specialized Care
- Specialist Care: If you require specialized care (e.g., a dermatologist, physical therapy, or other specialists), paying out-of-pocket for those services can be expensive. Health insurance typically helps cover these costs.
- Example: A specialist visit could cost hundreds of dollars without insurance, making it difficult to get the care you need for ongoing conditions or injuries.
In Summary: The True Cost of Skipping Health Insurance
While it may feel like a savings strategy to go without health insurance as a young adult, it can lead to significant financial risks. Medical emergencies, chronic conditions, or even just the need for regular health check-ups and prescriptions can end up costing much more than the cost of insurance. Additionally, the potential for missing out on subsidies or facing penalties in certain states adds to the financial consequences.
If you’re still in school or starting a new job, there are often affordable options available, like staying on a parent’s plan, marketplace subsidies, or Medicaid in some states. Even if you’re healthy now, getting insured helps protect you against the unexpected and provides peace of mind when it comes to your health and finances.
